The free market equilibrium price of a demerit good, such as high-strength cider, is £6.00\text{£}6.00£6.00 per litre. Currently, the government does not intervene in this market. The government is most likely to correct the market failure associated with this demerit good if it
imposes a maximum price of £5.00\text{£}5.00£5.00 per litre.
provides a subsidy of £1.50\text{£}1.50£1.50 per litre to producers.
imposes an indirect tax of £2.00\text{£}2.00£2.00 per litre.
sets a minimum price of £5.50\text{£}5.50£5.50 per litre.
